Soni Afriansyah’s Essay from Jambi University

Improvement of Creative Industry as Supporting ASEAN Economic Community in

Facing Economic Integration in Indonesia

Soni Afriansyah, University of Jambi

Abstract, International economic integration limits the authority of a State to use fiscal,

monetary and monetary policies to influence domestic economic performance. Another

disadvantage is the possibility of job loss and potential global market for a country that is

unable to compete. Manpower and products from neighboring countries will jump into the

market with lesser obstacles. Consequently, Indonesian workers must have higher or at least

equal competences than foreign labors in order to obtain decent work. Competition to attract

investment for the sustainability of development will also be more severe with the principle of

free movement of capital. In fact, it is not impossible that our national entrepreneurs will

actually invest in other ASEAN member countries in order to achieve better earnings .

Therefore, Indonesia should cooperate in the economic field among ASEAN Countries one of

the ASEAN Economic Community (AEC). With AEC, these can trigger an increase on

exports that will ultimately increase Indonesia's GDP. In addition, AEC offers a huge

opportunity for job seekers because it uncovers abundant vacancies of diverse skills among

labors of ASEAN members. However, with the existence of AEC, Indonesia certainly needs

to increase Indonesia Economic Growth in every sector of economy such as culinary, fashion,

television and radio, and publishing. Moreover, the Creative Industry is also considered to

play a pivotal role in assisting Indonesia's economic growth. As indicated from the Ministry

of Industry data that in 2015 the creative industry grew up to 7%. Nevertheless, the creative

industry is still considered not growing significantly compared to other countries such as India

which its industry reaches 30% of growth. Thus, the government of Indonesia needs to carry

out effective steps to build creative industry are Develop Creativity with Human Resource,

Easy Financing Regulation, Infrastructure Development and Recognition of Legality of

Soni Afriansyah’s Essay from Jambi University

Creation. Thus, the creative industry in Indonesia continues to increase which produces a

GDP of ≥7% and leads to job creation for Indonesian Workers.

Keyword: Creative Industry, ASEAN Economic Community and Economic Integration

Soni Afriansyah’s Essay from Jambi University

Improvement of Creative Industry as Supporting ASEAN Economic Community in

Facing Economic Integration in Indonesia

International economic integration limits the authority of a State to use fiscal,

monetary and monetary policies to influence domestic economic performance. The loss of

state sovereignty is the greatest cost or sacrifice that is "given" by each country that integrates

in one region. Another disadvantage is the possibility of job loss and potential global market

for a country that is unable to compete. Manpower and products from neighboring countries

will jump into the market with lesser obstacles. This has the potential to generate

unemployment in the country and dependence on cheaper and efficient imported products.

Trade between countries will take place very freely in this AFTA era. Within AFTA, the

government allows to impose an import duty of 1 to 5 percent or issues a special policy to

protect industrially sensitive manufactured goods. In contrast, in the era of PTA Indonesia's

products will fully compete with goods from other countries. With the current quality and

high taxes and levies as many entrepreneurs complain, it will be very difficult for Indonesian

goods to compete. Labor movement from other countries can have a tremendous impact for

Indonesia. On the one hand, domestic labor competition will be very competitive. Our

workers will not only compete with other Indonesian fellows, but also with workers from all

ASEAN members. Consequently, Indonesian workers must have higher or at least equal

competences than foreign labors in order to obtain decent work. Competition to attract

investment for the sustainability of development will also be more severe with the principle of

free movement of capital. In fact, it is not impossible that our national entrepreneurs will

actually invest in other ASEAN member countries in order to achieve better earnings.

Therefore, Indonesia should cooperate in the economic field among ASEAN Countries one of

the ASEAN Economic Community (AEC).

AEC begins to establish a single and production-based market among ASEAN

countries so that ASEAN members can gain market dynamic and compete with mechanisms
Soni Afriansyah’s Essay from Jambi University

and steps through some new economic development initiatives. First, integrate existing areas

in priority sectors. Second, provide facilities for business movement, workforce has talents

and goals. Third, strengthen market institutions in ASEAN. These initiatives become the first

step in realizing the ASEAN Economic Community. With AEC, these can trigger an increase

on exports that will ultimately increase Indonesia's GDP.

In addition, AEC offers a huge opportunity for job seekers because it uncovers

abundant vacancies of diverse skills among labors of ASEAN members. However, with the

existence of AEC, Indonesia certainly needs to increase Indonesia Economic Growth in every

sector of economy such as culinary, fashion, television and radio, and publishing. Moreover,

the Creative Industry is also considered to play a pivotal role in assisting Indonesia's

economic growth. As indicated from the Ministry of Industry data that in 2015 the creative

industry grew up to 7%. Nevertheless, the creative industry is still considered not growing

significantly compared to other countries such as India which its industry reaches 30% of

growth. Thus, the government of Indonesia needs to carry out effective steps to build creative

industry. Those steps are:

1. Develop Creativity with Increased Human Resources

According to Surya (2006), creativity is indispensable in this life for several reasons.

First, creativity provides opportunities for individuals to actualize themselves. Second,

creativity allows people to find alternatives in problem solving. Third, creativity can

provide life satisfaction. Last, creativity allows humans to improve their quality of life. In

other words, creativity is closely related to human resources. Preparation of human

resources is not only in terms of quantity but also in terms of quality of human resources.

Those must be well-prepared resources that can compete with foreign labors (comparative

and competitive human resources). Measures that can be taken in preparing human

resources include:
Soni Afriansyah’s Essay from Jambi University

i. Curriculum, syllabus, and teaching materials need to be continuously developed

to anticipate progressive developments in the industry. In the preparation of

curriculum and syllabus should be included in the industry so that the materials

provided are in accordance with the industry breakthroughs.

ii. Institutions should not only rely on the existing sciences or technology but also

develop innovations in the field of the science and technology.

2. Easy Financing Regulation

To build a creative industry well, the government needs to issue regulations that

facilitate the creative industry makers. The regulations should not hold back financial

partnership from the government because the creative industry makers need financial aids

to strengthen their business. The World Bank survey shows that financial institutions such

as banks, venture capital, cooperatives, export financing institutions and institutions

providing financing through partnership programs and revolving funds have a good

perception of the possibilities of financing the creative industries in general, as well as in

particular handicraft businesses .

3. Infrastructure Development

Simon Kuznets states that the economic growth of a country is highly affected by

the accumulation of capital (investments in land, equipment, infrastructure and facilities

and human resources), natural resources, human resources both in terms of quantity and

quality of population, technological progress, to information, the desire to innovate and

develop themselves and work culture (Todaro, 2000). It can be concluded that Economic

Growth and Infrastructure have a close relationship. Infrastructure development can be a

drive of economic growth, meanwhile economic growth itself is also a pressure for

infrastructure. Continual improvement of infrastructure in general will be able to improve

Soni Afriansyah’s Essay from Jambi University

human mobility, the creation of cost efficiency, time, and energy. The availability of

adequate infrastructure is needed to support the activities of government, economy,

industry, and other social activities. For instance, the industry needs extensive electricity

supply. Indonesia is experiencing problems in electricity in which electricity supply

cannot fulfill the demand for electricity. Consequently, this causes blackouts in large

areas, not only houses but also industries. This will affect the growth of industry.

Therefore, the electricity network infrastructure is a prominent key in supporting the

activities of the community and also very influential on economic problems.

4. Recognition of Legality of Creation

Involving in the ASEAN free market era by the end of 2015, the domestic creative

industry must compete with imported products from Singapore, Malaysia and Thailand

with competitive price and quality. In the ASEAN creative industry competition, products

from Thailand and Vietnam are often called to have the most similar qualities to those of

Indonesia. In contrast, products from Singapore and Malaysia are superior in terms of

technology and cultural innovation. Therefore, it is necessary to formulate a code of ethics

in order to trigger fair and competitive competition and mutual respect for the creative

industries excellence among the ASEAN countries. It is hoped that no losses is achieved

by Indonesia due to counterfeiting and copyright violations reached US $ 1 trillion and

eliminate employment for 2 million people (data United States Trade Representative,

2012). This is exacerbated by the lack of awareness of artists in fighting for Intellectual

Property Rights
Soni Afriansyah’s Essay from Jambi University

REFERENCES

IIPA. (2012). Historical Summary of Selected Countries Placement for Copyright-

Related Matters on the Special 301 List. Retrieved from iipa.com:

http://www.iipa.com/pdf/2012SPEC301 HISTORICALSUMMARY.pdf

Surya, Muhammad. 2006. Potensi Teknologi Informasi dan Komunikasi dalam

Meningkatkan Mutu Pembelajaran (Potential of Information and

Communication Technology in Improving the Quality of Learning).

Pustekom: Jakarta

Todaro, M.P. 2000. Economic Development. Addison-Wesley, Harlow.